GFH ANNOUNCES RESULTS FOR FIRST QUARTER 2010
MANAMA, 9th May 2010
Gulf Finance House (GFH) announced today a net loss of US$7.5m for the March Quarter 2010 compared to a loss of US$37.7m for the March Quarter 2009. GFH’s total income for the March Quarter 2010 was US$18.5m compared to March 2009 total income of US$49.5m.This compares to a net loss for the December Quarter 2009 of US$ 607 million including provisions with negative revenues of US$ 11.5m (due to associate losses) and a US$ 32 million operating loss for that quarter.
This improved performance during the quarter reflects the restructuring efforts taken by management. The operating costs were reduced by 45% this quarter.
GFH Chairman Esam Janahi said: “The March Quarter result was very pleasing especially that there were no provisions taken this quarter. . The Board has taken a very prudent approach in declaring this result and is committed to continuing transparency in the way we do business. The result also shows that management has taken the necessary steps to reposition GFH for a return to profitability in the near term. We look forward towards a continuing trend of improvement in the second quarter.”
Group Chief Executive Officer Mr. Ted Pretty commented: “We continue to work hard to improve our underlying performance. We have been focused on reducing our operating costs and meeting our debt commitments, and our efforts have been compensated by an encouraging US$ 24.5 million improvement in GFH operating results on the previous quarter. Besides, despite very challenging market times GFH has seen its revenues grow to US$ 18.5 million and has started the marketing and placement of new products which are expected to make important contributions to revenue in the next quarters. ”
Mr Pretty concluded: “Our objective is to ensure that we are well placed as the global markets improve. GFH had the courage to take the hard decisions in 2009 and now we can see a path to recovery for the Islamic finance sector. 2010 will be a bridge year from the challenges of 2009 to an improving market in 2010/2011.”
Mr. Pretty added: “GFH is a flagship institution in Bahrain and the Islamic financial sector and we are committed to working hard to set a better example as a model participant. Islamic finance has excellent growth prospects and GFH is well placed to take advantage of this growth.”
ENDS
About Gulf Finance House
Established in 1999, Bahrain based Gulf Finance House (GFH) is one of the most successful and innovative Islamic investment banks in the Middle East. GFH historically focused on the conception and delivery of high value economic infrastructure projects. The Bank has also offered a diversified product range with a number of venture capital, private equity and asset management initiatives in addition to pioneering a number of Islamic financial institutions.
In addition to its share listings on the Kuwait and Bahraini Stock Exchange’s and the Dubai Financial Market, 2007 witnessed the Bank’s GDR listing on the London Stock Exchange. Over the past year, GFH has evolved its business model with a view to establishing itself as the world’s leading Islamic investment bank. Under this new structure GFH will essentially operate with two primary businesses, GFH Real Estate & Infrastructure and GFH Capital.
The Bank has won numerous local and international awards as a testimony of its commitment to excellence and its pioneering and innovative approach, including “Best Investment Bank 2008″, by Islamic Banking and Finance, “Best Investment Bank” three years running (2005-2007), awarded by Banker Middle East; “Best Islamic Investment Bank” by World Finance 2007; “MENA Investment Bank of the Year 2008″ by Acquisitions Monthly; “Best Investment Bank 2008″, by Islamic Banking and Finance; and “Best Islamic Finance House” at the Banker Middle East Industry Awards 2009.
For further information please contact:
Alia Shaikho
Media Relations Senior Manager
Corporate Communications Department
Tel: +973 17538538 Ext 875
Email:
Website: www.gfh.com